Should You Consider Buying Enphase Energy (ENPH) Shares?

ClearBridge Investments, an investment management firm, published its “Sustainability Leaders Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Sustainability Leaders Strategy underperformed its Russell 3000 Index benchmark during the first quarter. On an absolute basis, the Strategy had gains in one of 10 sectors in which it was invested (out of 11 sectors total) – the utilities sector. The main detractors were the information technology (IT), consumer discretionary and industrials sectors. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Sustainability Leaders Strategy mentioned Enphase Energy, Inc. (NASDAQ:ENPH) and explained its insights for the company. Founded in 2006, Enphase Energy, Inc. (NASDAQ:ENPH)  is a Fremont, California-based solar energy company with a $24.4 billion market capitalization. Enphase Energy, Inc. (NASDAQ:ENPH)  delivered a -0.98% return since the beginning of the year, while its 12-month returns are up by 47.32%. The stock closed at $181.14 per share on May 05, 2022.

Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q1 2022 investor letter:

“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”

Photo by Science in HD on Unsplash

Our calculations show that Enphase Energy, Inc. (NASDAQ:ENPH) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Enphase Energy, Inc. (NASDAQ:ENPH) was in 50 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 52 funds in the previous quarter. Enphase Energy, Inc. (NASDAQ:ENPH) delivered a 28.26% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on Enphase Energy, Inc. (NASDAQ:ENPH) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.